EU and China reach deal in solar panel dispute

European Commission says it has reached "an amicable solution" with Beijing in a row over imports of Chinese solar panels.

Both sides have agreed a minimum price for the panels, EU Trade Commissioner Karel De Gucht said.

The dispute erupted after the Commission - the EU's executive arm - imposed temporary anti-dumping levies on the imports.

It argued that Chinese firms were undercutting rivals.

China is the world's largest producer of solar panels. Its exports to Europe totalled 21bn euros ($27bn; £18bn) in 2011.

"After weeks of intensive talks, I can announce that I am satisfied with the offer of a price undertaking submitted by China's solar panel exporters," De Gucht said on Saturday.

He added that the agreement would "lead to new market equilibrium at sustainable prices".

The anti-dumping case was the biggest ever undertaken by the Commission.

In June, the EU accused China of "dumping" solar panels in Europe - selling them at below cost to steal market share - and then said it would impose import tariffs of up to 47.6% on them.

China said EU farm subsidies had resulted in European countries "dumping" wine on China, and warned it may respond in kind.